The new set of standards, created by FTSE, will exclude companies that extract or explore for fossil fuels.

This is believed to be the first time a leading index group has opted to specifically bar such companies.

Kevin Bourne, a FTSE managing director said the move was in response to the growing debate around the concept of the ‘Carbon Bubble’ – “one of the fastest-moving debates I think I’ve seen in my 30 years in markets.”

James Leaton, Head of Research at the Carbon Tracker said:

It is great to see a range of approaches being developed to address the potential for stranded assets including broker research, engagement, indices, and disclosure requirements – this shows we have put the issue on the agenda of investors to create this demand.

Some of the best known names on the London Stock Exchange will be targeted, including BP and BHP Billiton, as well as tech giants like Apple, Google and Microsoft, pharmaceutical companies such as Johnson & Johnson and some large US banks.

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